Klarna’s AI replaces 700 workers – Now, Fintech CEO hopes to return humans after $40B falls
Sebastian Siemiatkowski, co-founder and CEO of Klarna Group PLC, has admitted that the fintech giant’s active use of artificial intelligence in customer service has backfired. “You end up with lower quality because the cost is unfortunately a major assessment factor when organizing this process.”
The company has stopped hiring for more than a year and focuses on building AI capabilities, part of a broader cost-reduction effort. But, Siemiatkowski now says that this transition requires recalibration. “Really investing in the quality of human support is the way we will go.”
Man touching back to Krana
According to a Bloomberg report, Klarna is launching new recruitment drivers for customer support roles in a strategic hub — a “rare” move. The company is piloting a new model where remote workers, such as students or people in rural areas, can log in and provide services on demand, “in an Uber-type setting.” Currently, the two agents are part of the trial.
“We also know that there are a lot of Kralner users who are passionate about our company and will work for us,” Siemiatkowski said, stressing that it is crucial to “always” provide customers with the choice to talk to people from a “brand perspective” and “company perspective”.
AI remains the center of Krana
While shrinking its full-time customer service, Klarna remains committed to integrating AI in its operations. News media reported that the company is rebuilding its technology stack with the core of AI to improve efficiency and is working for digital finance assistants to help customers ensure better interest rates and insurance transactions.
Siemiatkowski, 43, said Klarna’s relationship with Openai is still strong. “We want to be [OpenAI’s] Favorite guinea pig,” he recalled, referring to Klarna’s early collaboration with AI leaders in 2023.
Post-prosperity course correction
Klarna’s update recruitment has been turbulent after a period of turmoil. The company’s valuation fell from its peak of $45.6 billion in 2021 to $6.7 billion in the funding round in 2022. It has since rebounded, with plans to raise $1 billion through its IPO at a valuation of more than $15 billion, although those plans have been recently suspended amid market volatility.
The company’s announcement in 2024 that AI is handling the workload of 700 human agents shocked the call center industry, causing a sharp drop in stocks based in France to be headquartered in teleportation.
The labor force is still ready to shrink
Despite returning to recruitment, Krana’s staff is expected to shrink through loss. “In a year, we may drop to 2500 of 3,000 people,” Siemiatkowski said, adding that the rate of layoffs may increase as AI technology improves.
Klarna CEO quipped: “I feel a little bit like Elon Musk and always want to say what will happen tomorrow and when it will take longer. I think it’s likely to be within 12 months.”
